Investing

Solar tech company Nextracker expected to price at upper end of range in good sign for IPO market

choja | E+ | Getty Images

The solar technology company Nextracker is expected to price its initial public offering at the high end of its stated $20 to $23 per share range, people with knowledge of the process told CNBC.

The order book for Fremont, California-based Nextracker is “well subscribed,” meaning demand will allow the company to meet or even exceed expectations on pricing, according to the sources, who declined to be identified speaking about the process.

The development is a good sign for the moribund IPO market. Proceeds from public listings fell 94% last year after the Federal Reserve began its most aggressive rate-increasing campaign in decades. Investors soured on the shares of unprofitable tech companies in particular, many of which are still underwater after listing in 2020 and 2021.

The Nextracker IPO, which had sought to raise up to $535 million, is arguably the first meaningful public listing this year as it is set to be the biggest U.S. IPO since autonomous driving firm Mobileye raised $990 million in October.

Nextracker is set to begin trading on the Nasdaq exchange Thursday morning under the symbol NXT, according to one of the people.

The company, which was a subsidiary of manufacturer Flex, sells hardware and software that enables solar panels to follow the movement of the sun, improving the output of solar power plants.

JPMorgan Chase was lead advisor on the transaction, according to a regulatory filing.

This story is developing. Please check back for updates.

Articles You May Like

Optimism set to unlock $587M worth of OP tokens, will investors unload?
A Look At M.Patrick Carroll’s Miami Mansion Designed By Achille Salvagni
CNHC stablecoin issuer detained by Chinese police: Report
Labour plans to tackle housing crisis by forcing landowners to sell at lower prices
The Sky’s The Limit At This Revolutionary Maryland Estate